0
Celanese Investor Day 2006
    December 13, 2006
    New York




1
Forward Looking Statements, Reconciliation and Use of Non-GAAP
    Measures to U.S. GAAP
         This presentation may co...
Investor Day 2006
    CEO Update
    David Weidman
    President and CEO




3
A Leading Global Chemical Company


                                                  2006 Revenue1 (est)=          $6.7 B...
An Attractive Hybrid Business Model

                                                                  Celanese




      ...
Balanced Global and End Market
              Positions
                                                                   ...
Execution…Growth…Value

    > Phase I : Successful Transition – 2000 to 2006
      = Execute transformation strategy
     ...
Focus and strengthen portfolio…
           2000 to 2006
           Portfolio Strategy
           >     Invest in specialty...
Focus and strengthen portfolio
            % Revenue from Products Holding                                               %...
Productivity on the bottom line
                                       Total Employees; EBITDA                            ...
Significantly improved earnings profile
             since 2000
                                                          ...
Enterprise value growth leads peer group
                         Celanese Enterprise Value Growth                        ...
Execution…Growth…Value
     > Phase I : Successful Transition – 2000 to 2006
       = Execute transformation strategy
    ...
2007 – 2010:
            Celanese Earnings Growth Strategy
                                         Celanese 2010 Objectiv...
Asia: Enhancing Celanese’s geographic lead

                                                                              ...
Revitalization and acquisition:
                   Acetate drives earnings growth
                   Acetate Operating EBI...
Application and Customer Innovation:
     Ticona to drive >2x GDP growth
     Ticona                           Drive >2x G...
Organic growth: Acetyls continued
            success
             Celanese Acetic Acid and Vinyl Acetate
                ...
Operational Excellence:
            more than offset inflation
                                                          O...
Realigning the businesses to accelerate
         growth
     Building Block     Differentiated Intermediates   Specialty P...
New organizational alignment

                                                      2006 Pro-forma Revenue (est.) = $6.0 B...
Celanese: Well positioned for growth
                                               Primary Growth Focus
                 ...
Consumer and Industrial Specialties
     Doug Madden
     President, Celanese Acetate, AT Plastics,
     Emulsions & PVOH
...
Consumer and Industrial Specialties Group

                                                      2006 Pro-forma Revenue (e...
Consumer and Industrial Specialties:
       A significant opportunity
     > Consumer and Industrial Specialties backgroun...
Similar business dynamics and earnings
              growth opportunities
                                                ...
Aligned to deliver on unmet customer
         needs
                                                                      ...
Major Structural Changes to the
         Businesses
                                                Completed China       ...
Acetate: Revitalization continues to
      deliver earnings growth
                                                       ...
Acetate Products Limited (APL):
           A strategic fit
                         Financial Impact                      ...
Acetate: Uniquely positioned in Asia,
            particularly China
                                                     ...
Acetate: Strong earnings growth
               continues
                                   Consolidated Revenue, $MM
    ...
Industrial specialties: building a
     premier franchise
                                                                ...
Optimize / revitalize Industrial Specialties
       for growth and productivity
     2007                                 ...
Translating Vinyl Acetate success to Asia
                                      Global Latex Emulsions Market1
           ...
Translating Vinyl Acetate success to Asia
                VAE Case Study
                                          Global ...
Stable earnings and cash flow from
       Performance Products (Nutrinova)
     > Food ingredient business:
       = High ...
Consumer and Industrial Specialties
      Delivering Sustainable Earnings Improvement
                                    ...
Advanced Engineered Materials
     Lyndon Cole
     Executive Vice President &
     President Ticona




39
New organizational alignment

                                                      2006 Pro-forma Revenue (est.) = $6.0 B...
Advanced Engineered Materials is well
       positioned for continued growth
     > Established track record for profitabl...
Five-year track record of earnings growth
                                                                AEM Operating EB...
Substantial margin improvement
                                                                relative to peer group
    ...
Advanced Engineered Materials is well
       positioned for continued growth
     > Established track record for profitabl...
Focus on High Performance
                     Polymers and Thermoplastics
                              Global High Perfo...
Strong product portfolio
                Product               #1 or   Transportation    Electrical   Consumer    Industri...
Exposure to a broad range of
     end-use markets…
                          Revenue by end use market 2006E~ $920MM
     ...
Fueling growth with non-automotive
                     applications
                     AEM Non-Automotive Revenue Growt...
Supporting customer growth with global
           facilities




             2006E Sales by Region

       Asia/Pacific  ...
Continuous investment in our
                     global franchises
     > Core Investments                               ...
Advanced Engineered Materials is well
       positioned for continued growth
     > Established track record for profitabl...
Comprehensive Approach to Growth

                                                                Development
            ...
Well represented in fastest-growth
             region of the world
                          2005: 8,100 kt              ...
Development Processes:
     Foundation of Performance
     Business Technology Plan
                                      ...
Accelerating growth with
       close customer relationships
     > Key Drivers                                           ...
AEM products positioned to meet
          evolving market requirements
                                    Safety         ...
Automotive Volume Growth
                                    Advanced Engineered Materials                                ...
Accelerated growth in non-
     automotive applications

                        LED applications in Automotive,
        L...
Incremental growth opportunity : LED
                                          Global LED shipments in $ MM
     > Innovat...
Incremental growth opportunity: well
     positioned to capture global sensor growth
                                     ...
≥2x GDP Growth through 2010
                                                                           $350 MM
           ...
Opening markets with new
     applications and offerings
     Expanding Products -                 Expanding              ...
Acetyl Intermediates

     John O’Dwyer
     President, Acetyl Intermediates, Celanese Asia




63
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
celanese investor_day_2006_complete_presentation
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  1. 1. Celanese Investor Day 2006 December 13, 2006 New York 1
  2. 2. Forward Looking Statements, Reconciliation and Use of Non-GAAP Measures to U.S. GAAP This presentation may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. When used in this release, the words “outlook,” “forecast,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this release. Numerous factors, many of which are beyond the company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Certain of these risk factors are discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. This presentation reflects three performance measures, operating EBITDA, adjusted earnings per share and net debt as non-U.S. GAAP measures. The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is operating profit; for adjusted earnings per share is earnings per common share-diluted; and for net debt is total debt. Operating EBITDA, a measure used by management to measure performance, is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for other charges and adjustments. Our management believes operating EBITDA is useful to investors because it is one of the primary measures our management uses for its planning and budgeting processes and to monitor and evaluate financial and operating results. Operating EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to operating profit as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of operating EBITDA may not be comparable to other similarly titled measures of other companies. Additionally, operating EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements nor does it represent the amount used in our debt covenants. Adjusted earnings per share is a measure used by management to measure performance. It is defined as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for other charges and adjustments, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a GAAP financial measure because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. Net debt is defined as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s capital structure. Our management and credit analysts use net debt to evaluate the company's capital structure and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. Free Cash Flow is defined as Cash Flow from Operations less Capital Expenditures. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the company’s cash flow. Our management and credit analysts use free cash flow to evaluate the company's liquidity and assess credit quality. This non-U.S. GAAP information is not intended to be considered in isolation or as a substitute for U.S. GAAP financial information. 2
  3. 3. Investor Day 2006 CEO Update David Weidman President and CEO 3
  4. 4. A Leading Global Chemical Company 2006 Revenue1 (est)= $6.7 Billion 2006 Operating EBITDA1 (est)= $1.2 Billion 2006 Adjusted EPS (est)= $2.70 - 2.80 Chemical Acetate Technical Performance Products Products Polymers Ticona Products 2006 Revenue (est): 2006 Revenue (est): 2006 Revenue (est): 2006 Revenue (est): $0.7 B $4.6 B $0.9 B $0.2 B 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): 2006 Op. EBITDA (est): $0.14 B $0.85 B $0.25 B $0.07 B Global #1 Producer in Global #1 Producer in Cash Generator, Global Global #1 Producer2 Our Key Products2 Our Key Products2 #1 Producer2 1 Includes Other Operating Segment, with Revenue (est) of $0.3 B and Operating EBITDA of ($0.1 B) 2Source:Tecnon and SRI. (2005 estimates) 4
  5. 5. An Attractive Hybrid Business Model Celanese Commodity Intermediate Specialty Consumer Oil & Gas Chemicals Products Products Products • Dow* • Exxon • Dow* • Rohm & Haas* • Motorola • Eastman* • BP • Lyondell • ICI* • Toyota • PPG* • Shell • Methanex • Sherwin-Williams • FMC* • Siemens Balance of intermediate & specialty products * Celanese internal peer group 5
  6. 6. Balanced Global and End Market Positions Paints & Coatings Food and Beverage Textiles 14% 5% 6% Automotive Consumer 9% and Industrial 40% 35% 25% Adhesives 4% Consumer / Medical Construction Applications 8% 11% Chemical Additives Performance Industrial 6% Applications 3% Filter Media Paper & Packaging 9% 14% Other Notes: 11% Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition End use breakdown based on 2006 est. external sales revenue Geographic breakdown based on 2005FY revenue to external customers by destination 6
  7. 7. Execution…Growth…Value > Phase I : Successful Transition – 2000 to 2006 = Execute transformation strategy = Growing value > Phase II: Deliver Growth – 2007 to 2010 = Build geographic lead: Increase presence in Asia = Grow downstream specialties: Drive business specific opportunities = Align organization: Better address growth opportunities Continue to create value in excess of the peer group 7
  8. 8. Focus and strengthen portfolio… 2000 to 2006 Portfolio Strategy > Invest in specialty businesses > Build strength in differentiated intermediates > Extend the acetyl chain globally > Reduce exposure to non-differentiated, more commodity businesses > Divest non-core business lines Total Revenue Impact1 Acquisitions Divestitures Acquisitions Air Products PVOH Oxo alcohols Vectran Clariant Emulsions Polyol derivatives Emulsion Powders $1.8 B Vinamul Trespaphan DH Actives Acetex Nylon Estech JV Divestitures APL (pending) Acrylates Emulsions Greece PBI COC ($1.8 B) Fuel Cells 1Data from the year in which the transaction occurred 8
  9. 9. Focus and strengthen portfolio % Revenue from Products Holding % Revenue from Specialty Businesses #1 or #2 Position 2000 2006E1,2 2000 2006E1 ~95% Nutrinova Total Revenue $6.2 B ~70% Acetate 5%3 Total Revenue Ticona $4.9 B Nutrinova 40% Acetate 33% Ticona 31% Chemical Chemical Products Products 55% 36% Specialty Products Differentiated Intermediates 1Includes oxo alcohol and polyol derivative divestiture and pending APL acquisition 2~95% #1 or #2 with the planned 2007 closure of all Celanese methanol production Non-differentiated Intermediates 3Primarily methanol and formaldehyde revenue 9
  10. 10. Productivity on the bottom line Total Employees; EBITDA Celanese Operational 2000-20061 Excellence 1,400 120 > 6-year track record of execution 1,200 100 > Continue capture of Celanese 1,000 specific opportunities Operating EBITDA ($000) % reduction versus yr-end 80 = ~$80 million in additional CE 2000 (ex M&A) 800 specific savings in 2007 60 600 > Ongoing productivity to more 40 than offset inflation 400 > Continuing growth in existing 20 200 assets > Synergies to enable growth 0 0 2000 2001 2002 2003 2004 2005 2006E through future acquisitions EBITDA Number of Employees Relentless productivity improvements 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition Note: EBITDA references are Operating EBITDA, as defined by the Company, unless otherwise noted 10
  11. 11. Significantly improved earnings profile since 2000 Operating EBITDA Growth1 ~1,200 2000 – 2006E ($MM) 40-45 110-115 90-95 125-130 300-310 528 Cost Increase in Portfolio 2006E Baseline 2000 Volume Margin Reduction net Earnings from Optimization of Inflation Affiliates Based on Celanese estimates 1Excludes oxo alcohol and polyol derivative divestiture and pending APL acquisition All numbers are based on CE estimates 11
  12. 12. Enterprise value growth leads peer group Celanese Enterprise Value Growth Enterprise Value Growth 2000 – 2006YTD Debt and Market 2000 – 2006YTD CAGR Capitalization 22% 8.0 $6.9 B 7.0 CE: 18% CAGR 18% 6.0 14% 2000-2006 EV CAGR 2000-2006 EV ($ B) 5.0 10% 4.0 6% 3.0 $2.5 B 2% 2.0 -2% 1.0 0.0 -6% ICI Eastman Dow PPG Rohm FMC Celanese YE 2000 Current and Market Capitalization Debt Haas Track record of growing value Equity value as of December 8, 2006. Source: Thompson Financial; Company 10Ks 12
  13. 13. Execution…Growth…Value > Phase I : Successful Transition – 2000 to 2006 = Execute transformation strategy = Growing Value > Phase II: Deliver Growth – 2007 to 2010 = Build geographic lead: Increase presence in Asia = Grow downstream specialties: Drive business specific opportunities = Align organization: Better address growth opportunities Continue to grow value in excess of the peer group 13
  14. 14. 2007 – 2010: Celanese Earnings Growth Strategy Celanese 2010 Objective: $300-$350 million EBITDA Growth Balance Operational Business Specific Asia Sheet Excellence >Nanjing >Evaluate >Productivity Revitalization Innovation Organic Complex capital improvements structure more than offset >Affiliates opportunities inflation > Ticona – new >Acetyls – >Acetate products and continued >Emulsions applications greater than market growth in Acetic Acid and VAM $300 - $350 million in additional EBITDA growth 14
  15. 15. Asia: Enhancing Celanese’s geographic lead 2010E Regional Split 2006E Regional Split Europe Europe Revenue Revenue Asia Asia 30-35% 25% Americas Americas Europe Europe Earnings Earnings Asia Asia 45-55% ~30% Americas Americas Approximately 50% of earnings from the fastest growing region *Based on Celanese 2005 consolidated net sales (does not include sales from equity and cost investments). 15
  16. 16. Revitalization and acquisition: Acetate drives earnings growth Acetate Operating EBITDA Impact Underway: Acetate 2004 – 2008E > Continue earnings growth through 2008/2009 $250 th ow > Integrate Acetate Products r G s ing Limited (APL) arn $200 E Initiated: Emulsions/PVOH % 00 >1 > Enhance customer and regional $ MM $220 - focus $150 230MM > Reduce product complexity > Drive significant productivity $100 improvement through operational excellence $50 Ongoing: Performance Products 2004 2005 2006E 2007E 2008E > Support customer formulation 1 2 3 development in new products Acetate Seg. EBITDA JV Dividends APL Revitalization opportunities in other businesses 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending 16
  17. 17. Application and Customer Innovation: Ticona to drive >2x GDP growth Ticona Drive >2x GDP Growth through 2010 Operating EBITDA Growth > Translation of existing polymers to new 2007-2010 markets >$350 MM > Continued Affiliate growth > Innovation and new product development ~$250 MM > Polymer modifications 2010 EBITDA Profile > Accelerating growth in non-automotive 2006E applications EBITDA > Increase automotive market share and pounds per vehicle EBITDA profile increase by ≥ $100 MM by 2010 17
  18. 18. Organic growth: Acetyls continued success Celanese Acetic Acid and Vinyl Acetate > Favorable industry dynamics Normalized Growth1996-2008E through 2009 200 180 > Historical “market-plus” growth 160 continues 140 120 > Commercial production from 100 Nanjing begins in 2007 80 60 = $600 - $700 million 1996 1998 2000 2002 2004 2006E 2008E increased revenues from the Acetic Acid VAM GDP Nanjing complex by 2010 Celanese Acetic Acid : 5.1% (6.3%1) Growth CAGR = >$500 million from Acetyls Market Acetic Acid2: 4.6% > Translate vinyl-based emulsions Celanese VAM: 4.4% (5.3%1) success to growing Asian Market VAM2: 3.5% market 1996 – 2008E Global GDP3: 3.1% 1Including the Acetex acquisition 2Source: Tecnon 3Source: CMAI 18
  19. 19. Operational Excellence: more than offset inflation Overall Company Productivity1 $ millions (year-over-year cost savings) average fixed cost inflation 2001 2002 2003 2004 2005 2006E 2007 Target Fixed cost reduction Variable and energy improvement Goal for 2007 and beyond: more than offset inflation 1Does not include productivity from divested businesses 19
  20. 20. Realigning the businesses to accelerate growth Building Block Differentiated Intermediates Specialty Products Advanced Engineered Engineered Formaldehyde Plastics Materials (AEM) Raw Materials Acetate Anhydride and esters Nutrinova Acetic Acid VAM Emulsions Legend Chemicals Ticona Consumer and Acetyl Acetate Industrial Nutrinova Intermediates Specialties (CIS) 20
  21. 21. New organizational alignment 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Acetyl Consumer and Industrial Advanced Engineered Intermediates Specialties Materials 2006 Revenue (est): $2.9 billion 2006 Revenue (est): $2.2 billion 2006 Revenue (est): $0.9 billion 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~29%3 2006 Op. EBITDA Margin (est.): ~16% Acetic Acid Ticona and Affiliates Acetate and Industrial Performance Vinyl Acetate Products Affiliates Specialties Acetic Anhydride Other Acetyl Derivatives Emulsions IBN Sina Affiliate PVOH AT Plastics Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 billion 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture and excludes pending APL acquisition 2Does not include Other Operating Segment and Intersegment eliminations 3Does not include the additional proportional EBITDA from equity affiliates 21
  22. 22. Celanese: Well positioned for growth Primary Growth Focus Balance Operational Group Asia Revitalization Innovation Organic Sheet Excellence Consumer and X X X X Operating EBITDA Industrial Specialties Advanced X X X X Engineered Materials Acetyl X X X Intermediates Celanese EPS X Corporate $300 – $350 million in additional EBITDA plus EPS potential by 2010 22
  23. 23. Consumer and Industrial Specialties Doug Madden President, Celanese Acetate, AT Plastics, Emulsions & PVOH 23
  24. 24. Consumer and Industrial Specialties Group 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Advanced Engineered Acetyl Consumer and Industrial Materials Intermediates Specialties 2006 Revenue (est): $0.9 B 2006 Revenue (est): $2.9 B 2006 Revenue (est): $2.2B 2006 Op. EBITDA Margin(est.):~29%3 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~16% Performance Products Industrial Specialties Acetate and Affiliates 2006 Revenue (est): $1.3 B 2006 Revenue (est): $0.2 B 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% 2006 Op. EBITDA Margin (est): ~38% 2006 Op. EBITDA Margin (est.): ~22% Emulsions Oxo Alcohol Divestiture PVOH 2006 Revenue (est): $0.7 B AT Plastics 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 24
  25. 25. Consumer and Industrial Specialties: A significant opportunity > Consumer and Industrial Specialties background > Proven track record of revitalization and growth in Acetate > Growth and innovation opportunity in Industrial Specialties > Successful life-cycle management in Nutrinova 25
  26. 26. Similar business dynamics and earnings growth opportunities 2006E Pro-forma Revenue ► Over 1/3 of total Celanese $6.0B1,2 revenue Acetyl ► All specialty derivatives of Intermediates Acetyl Intermediates Industrial Specialties ► Businesses less sensitive to economic cycles ► Similar consumer / end use dynamics Performance Products ► Stable cash generation Acetate ► Earnings growth through Advanced revitalization and Engineered innovation Materials 1Includes oxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 26
  27. 27. Aligned to deliver on unmet customer needs Competitive Key Trends CIS Group Differentiator Paints, Coatings & Adhesives (Emulsions/PVOH) > Strong growth in developing markets Industrial Global footprint, > Low VOC requirements Specialties Innovation > Continued growth in convenience items (non-wovens) Food & Beverage (Nutrinova) ≥ Multiple reduced-sugar product offerings Product quality, Performance manufacturing ≥ Blending of sweeteners and flavors to Products enhance taste excellence Filter Media (Acetate) ≥ Strong tobacco growth in Asia Global footprint, Acetate low-cost ≥ Increasing filter length and filter design manufacturing Tailoring innovative solutions 27
  28. 28. Major Structural Changes to the Businesses Completed China APL acquisition venture tow announced expansions Launched Acetate Commenced Revitalization construction of Acquired Air Acquired Acquired AT Emulsion plants Products PVOH Vinamul Plastics in China 1999 2006 Divested Acquired Revenue 1999: Revenue 2006: Exited Acetate Emulsion Clariant $1.1B $2.2B Filament Powders Emulsions Improved product portfolio Built the #1 global vinyl-based emulsions business Extended global reach 28
  29. 29. Acetate: Revitalization continues to deliver earnings growth 2008 2009 2002 2003 2004 2005 2006 2007 Timeframe > Historical = Modest cash generation > Restructuring/Repositioning = China venture tow expansions Complete = Filament exit / site optimization Complete > Beyond 2007 = Maximize cash generation = Selective & sustainable growth = China venture flake expansion > APL Acquisition (pending) = Integrate the business = Capture synergies 29
  30. 30. Acetate Products Limited (APL): A strategic fit Financial Impact Strategic Impact > Acquisition amount: $~110MM1, > Broader customer mix and reach debt free, includes working capital > Brings Flake integration in Europe > 2005E revenue: ~$230MM1 > Adds film business > EBITDA margin: high single digit - > Increases Acetyl internal low double digit historically consumption > Significant synergies expected Improved Operations Footprint North America Europe China Ventures North America Europe 2007E 2007E 2005 to 2007E 2005 2005 Flake 2 sites 1 site Expanded 4 sites 0 sites Tow 2 sites 3 sites Expanded 3 sites 1 site Specialty Film na. 1 site na. na. na. Filament Fully exited na. na. 2 sites na. 1Assumes GBP= $1.87 30
  31. 31. Acetate: Uniquely positioned in Asia, particularly China Dividends from China Ventures > Region with largest demand $MM = China represents 30% of $32 global tow market $30 > Above average growth = Tow growth projected at 2- $21 3% per year in China versus 1-2% in NA/EU > Extending leadership = All expansions on-stream early 2007 $2 = Evaluating next stage opportunities 2005 2006E 2007E 2008E Tremendous growth in earnings and cash flow Source: Celanese Estimates 31
  32. 32. Acetate: Strong earnings growth continues Consolidated Revenue, $MM $250 $830- t men 870 rove $700 imp $200 % 0 >10 2004 2008E $MM $150 $220 – $230 MM $100 $50 2004 2005 2006E 2007E 2008E Segment EBITDA1 JV Dividends2 APL 3 1 EBITDA as reported excluding special charges, Restructuring in Operations, Other charges. 2 JV dividends from cost investments 3Acquisition Pending 32
  33. 33. Industrial specialties: building a premier franchise Looking Ahead: Positioned via Acquisition: Realizing the Potential $200 MM to $1,050 MM ► Continuous improvement - Sales 2006E in MM$ 1.200 selective revitalization 1.000 opportunities 800 ► Technology - Market Driven 600 Innovation 400 ► Globalizing -Translating VAE 200 0 Success to Asia PVOH ('99) Clariant Vinamul Acquired ('02) ('05) business base Invested, Developed, Became Leader ► # 1 vinyl emulsions producer ► New product introduction ► Optimized R&D centers Incremental EBITDA opportunity of ~$50MM 33
  34. 34. Optimize / revitalize Industrial Specialties for growth and productivity 2007 2008 2009 Focus on Marketplace Interface Innovation > Enhance customer focus > Consolidate sites/ capability > Reduce complexity > Accelerate Six Sigma Focus on Operational Excellence Controllables > Capture productivity gains > Consolidate operations > Streamline supply chain > Standardize processes, redesign workflows 34
  35. 35. Translating Vinyl Acetate success to Asia Global Latex Emulsions Market1 2.0 Why China and Why Vinyls? 1.8 1.8 > Demand in China growing at 1.6 >10% Regional Size (B tonnes) 1.3 1.4 > Diverse end-market 1.2 segments 1.0 > Good value proposition 0.7 0.8 versus competitive systems 0.6 > Meets low VOC requirements 0.4 0.2 0.0 US Europe China Vinyls 100% acrylic Styrene acrylics 1Excludes SBR, other minor latexes & powders Source: Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 35
  36. 36. Translating Vinyl Acetate success to Asia VAE Case Study Global VAE Volume 300 Celanese Advantages in VAE 250 > Formulation expertise 200 > Technological superiority kt 150 > Monomer integration 100 ~50% ~25% > Local production assets 50 > Celanese Nanjing VAE 0 plant close to demand USA Europe China 2005 Celanese Share of Sales1 2010 projected China 2010 projected Celanese China Well positioned to drive VAE growth in China 1 Kline Synthetic Latex Polymers Market Analysis Europe 2005, North America 2004 and China 2006 36
  37. 37. Stable earnings and cash flow from Performance Products (Nutrinova) > Food ingredient business: = High intensity sweetener Sunett® End-Use Applications (Sunett®) = Food protection ingredients (Sorbates) Confections/ Gums Beverages > Blends with flavors/other sweeteners drive penetration 15% 74% > Leading global position with key customers: 11% = Coca Cola, Wrigley, Pepsi, Kraft, Other Cadbury (Adams / Schweppes) 37
  38. 38. Consumer and Industrial Specialties Delivering Sustainable Earnings Improvement ≥ $450 MM s factor s ucces S ~$350 MM Achieve ≥ $ 100mm in Earnings Growth > Acetate – Revitalization, China growth and APL acquisition 2010 2006E EBITDA > Emulsions/PVOH – Technology, substitution, growth regions EBITDA Profile > Nutrinova – Grow volumes, formulation development > Collectively – Attractive, Growing and Profitable EBITDA profile increases ≥$100 MM by 2010 38
  39. 39. Advanced Engineered Materials Lyndon Cole Executive Vice President & President Ticona 39
  40. 40. New organizational alignment 2006 Pro-forma Revenue (est.) = $6.0 Billion1,2 Advanced Engineered Acetyl Consumer and Industrial Intermediates Specialties Materials 2006 Revenue (est): $2.9 B 2006 Revenue (est): $2.2 B 2006 Revenue (est): $0.9 B 2006 Op. EBITDA Margin (est.): ~23%3 2006 Op. EBITDA Margin (est.): ~16% 2006 Op. EBITDA Margin (est.): ~29%3 Acetate and Industrial Performance Ticona and Affiliates Products Affiliates Specialties Oxo Alcohol Divestiture 2006 Revenue (est): $0.7 B 2006 Op. EBITDA Margin (est.): ~10% Increased focus on each business’ growth opportunities 1Includesoxo alcohol and polyol derivative divestiture; excludes pending APL acquisition 2Does not include Other Operating Segment 3Does not include the additional proportional EBITDA from equity affiliates 40
  41. 41. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 41
  42. 42. Five-year track record of earnings growth AEM Operating EBITDA1 300 > Substantial volume $30 Operating EBITDA 2001-2006 ($MM) ~$250 growth ($10) 250 $50 > Regional growth $130 200 through affiliates > Cost reductions help 150 to offset margin compression 100 $52 > Portfolio optimization 50 enhances earnings profile 0 2001 Volume Affiliates Margin Net Portfolio 2006E of Cost Optimization Reduction and Currency 1 Data based on estimates 42
  43. 43. Substantial margin improvement relative to peer group Normalized AEM and peers‘ EBIT 10.0 Delta Ticona Operating Profit as % of Sales vs. Peers'* 5.3 5.0 Impact of affiliate 0.5 dividends further 0.0 average enhances AEM -0.5 -1.2 performance -5.0 -6.2 -10.0 -12.70 -15.0 2001 2002 2003 2004 2005 9M 2006 Peer group: corresponding segments of BASF, DSM, DuPont, GE Plastics, Solvay Plastics Zero line reflects peers average - all figures restated – Ticona figures 2005 without special items and COC effects 43 Excluding effects from Special Charges and other charges
  44. 44. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 44
  45. 45. Focus on High Performance Polymers and Thermoplastics Global High Performance Polymer and Engineering Thermoplastics 2006E: ~8 MM tons (2006E Growth = 6 %) € 100 / kg High Performance Polymers (HPP) € 10 / kg 4% Engineering Thermoplastics (ETP) € 3 / kg Performance others = 3 % Standard Polymers 96 % PU = 6 % PET = 5 % ABS, SAN, ASA: 4 % € 1 / kg PVC = 17 % PS, EPS = 9 % PE = 34 % PP = 19 % Range of Products Comprising: PA 6 & PA 66, PA 11 and PA 12, PC, POM, PBT, COPE, PET technical, PPE, COC & COP, UHMW-PE, PPS, LCP, High Performance Nylons, PEEK, PEI, PES & PSU, PTFE & other fluoropolymers 45
  46. 46. Strong product portfolio Product #1 or Transportation Electrical Consumer Industrial Medical #2 & & Electronics Appliance Hostaform® X X X X (Polyacetals) GUR® X X X (Ultra-high molecular weight PE) Celanex® X X X X (Polyester Engineering Resins) Vectra® X X X (Liquid Crystal Polymer) Celstran® X X (Long fiber reinforced thermoplastics) Fortron® X X X (Polyphenylensulfide) Leading position in > 80 % of sales 46
  47. 47. Exposure to a broad range of end-use markets… Revenue by end use market 2006E~ $920MM Other 6% Alternate Medical 5% Transportation Fabrication 47% 12% Electrical & Industrial 10% Electronics 8% Consumer & Appliance 12% …many with growth in excess of global GDP 47
  48. 48. Fueling growth with non-automotive applications AEM Non-Automotive Revenue Growth 600 ≥ Steady overall growth for 8% CAGR: 500 AEM since 2001 = 6% total revenue CAGR 400 Revenue ($MM) ≥ Non-automotive growth is the key driver 300 = 8% CAGR in non- automotive sales since 200 2001 100 ≥ Increased diversity to end- use markets 0 2001 2002 2003 2004 2005 2006E % Non-Automotive Revenue 47% 53% 48
  49. 49. Supporting customer growth with global facilities 2006E Sales by Region Asia/Pacific America 50 % 25 % Europe 25% Note: Regional split refers to Ticona sales + Polyplastics sales 49
  50. 50. Continuous investment in our global franchises > Core Investments > Affiliate Investments = Increased POM capacity at = Finalized POM capacity in Kelsterbach and Bishop Nantong = Doubled LCP capacity in Shelby = Investing in the largest global PPS plant at Wilmington = Will build a new 20 kt GUR (Fortron Industries) plant in China by 2008 Ticona Core EBITDA Growth1 Affiliate EBITDA Growth2 AEM Equity earnings and dividends 250 60 50 200 EBITDA* ($MM) 40 150 ($MM) 30 100 20 50 10 0 0 2001 2002 2003 2004 2005 2006E 2001 2002 2003 2004 2005 2006E 1 EBITDA as 2 Does not include proportional EBITDA from reported excluding equity earnings and dividends affiliates 50
  51. 51. Advanced Engineered Materials is well positioned for continued growth > Established track record for profitable growth > Advanced Engineered Materials business model > Growth expectations 51
  52. 52. Comprehensive Approach to Growth Development Process > Polymer modification > Innovation > New polymers for > New product development new existing applications / replacing of competing substrates AEM Products Regional Customer Employees Positioning Relationship > Penetration into existing >Translate existing polymers markets and end-users to new markets existing > Regional growth > Increasing market share and pounds per vehicle existing new Markets 52
  53. 53. Well represented in fastest-growth region of the world 2005: 8,100 kt 2010: 10,900 kt Other Global CAGR: 6.2% Other Europe Europe 4% 4% 32% Asia without 30% North Japan 4% 1% America 35% Asia without Europe 3% 2% Japan 31% Asia NA NA without 7% 1% Japan 23% 22% Japan Japan 9% 10% 2005 Regional Exposure Asia Rest of World AEM 50% 50% Market 40% 60% Source: Global Insight, May 2006; SRI Thermoplastics Outlook 2005; Top Right ETP 2005; CE estimates; AMI EU 2005; Freedonia ETP in NA 2006 53
  54. 54. Development Processes: Foundation of Performance Business Technology Plan > Reduce innovation > Sets 3-5 year objectives cycle time > Innovation roadmap Gate Process > Improve quality and marketability of products >Minimize > Defines new product development process development risk > Identifies critical issues > Improve efficiency of Six Sigma (DFSS/DMIAC/Lean) development > Tools to resolve critical issues / improve streamline process Processes add rigor to optimize and shorten development cycle 54
  55. 55. Accelerating growth with close customer relationships > Key Drivers Development Pipeline since 2004 (Value of customer-driven projects in the pipeline) = Growth Platforms 1.6 = Advanced Acetal 1.4 40% = Advanced High 1.2 Increase Normalized Value Temperature Resins 1.0 0.8 > Translation and application 0.6 development – non Growth platforms 0.4 automotive initiated 0.2 > Continued automotive 0.0 application innovation 4Q 04 1Q 05 2Q 05 3Q 05 3Q 06 2Q 06 4Q 05 1Q 06 Pipeline value has increased 40% since 2004 55
  56. 56. AEM products positioned to meet evolving market requirements Safety Fuel Efficiency AEM product Requirements advantages ≥ Safety ≥ Media resistance = Active Safety Systems ≥ Low moisture Light weight – Sensors enable absorption = Intelligent Award winning Intelligent Transportation ≥ Heat distortion Systems Celstran® Large Parts Transportation Systems ≥ High impact ≥ Environmental strength = Energy Efficiency Energy Efficiency = Fuel Efficiency ≥ Excellent creep = Weight strength Reduction ≥ Electrical and die- ≥ Automation, electrical behavior convenience LED in cars – less energy for more comfort and safety 56
  57. 57. Automotive Volume Growth Advanced Engineered Materials Advanced Engineered Materials type of resins in lbs per vehicle Sales Volume (metric tons) 2001 Asia1 6 12 2006E North America 2010E 18 Europe Highest 40 Current 2001 2002 2003 2004 2005 2006E Well positioned regionally and increasing penetration per vehicle 1Including affiliates Polyplastics / excluding Kepco and Fortron 57
  58. 58. Accelerated growth in non- automotive applications LED applications in Automotive, LED Residential, Public Areas “Hot-Spots” in the kitchen – Cookware Industrial and private cooling devices Filters for Water filtration and Industrial Air pollution Dosage Systems, Tele-Medicine, Medical Surgical devices, Sterile Packaging Performance Fibers for Ballistics, Safety Protection, Engineering ropes Non-Automotive sensors, Lithium-Ion Various Batteries, Electric Shielding Applications 58
  59. 59. Incremental growth opportunity : LED Global LED shipments in $ MM > Innovative applications for 12,000 entire portfolio 10,000 > Use up to 90% less energy than R AG %C current technologies 14 8,000 > Reduce carbon emission by ~200 MM tons 6,000 > 10x to 100x longer lifetime than traditional bulb technologies 4,000 > More reliable - no moving parts 2,000 > Less disposable waste materials 0 2005 2006E 2007E 2008E 2009E 2010E 2011E 59
  60. 60. Incremental growth opportunity: well positioned to capture global sensor growth World Sensor Demand 90 80 70 60 Process Management Chemical Plant $ billion 50 & Control Systems Management & Control 40 30 20 10 0 Home Electronics and Household Appliances 1995 2000 2005 2010E 2015E Security Systems & Electronics US WE Japan Asia/Pacific ROW Robotics for Home Airline Industry Military Consumer & and Industry Appliances 10% Asia and 6% global annual growth continues through 2010 60
  61. 61. ≥2x GDP Growth through 2010 $350 MM ≥ ~$250 MM Achieve >2X GDP growth through: > Innovation and new product development $52 MM > Translation of existing polymers to new markets > Polymer modifications > Current market penetration 2001 2006E 2010 EBITDA EBITDA EBITDA Profile EBITDA profile increase by ≥ $100 MM by 2010 61
  62. 62. Opening markets with new applications and offerings Expanding Products - Expanding Expanding New Offerings Functionality Opportunity > Large and small > Improved melt strength Focus on Polymer Chemistry appliances > Improved impact properties > Safety systems > Toughness > Portable > Improved chemical resistance water/irrigation > Expanded processability > Gears > Higher service temperatures > Transportation power systems > Improved surface properties > Fuel systems 2010 and beyond: new offerings enable market growth greater than 2x GDP 62
  63. 63. Acetyl Intermediates John O’Dwyer President, Acetyl Intermediates, Celanese Asia 63
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